RE Licensing Quiz Questions

640 acres

A section of land, established by a government survey, is a mile square and contains...?

A. Devise

An owner in severalty has the right to leave their real estate to someone else after their death. This is commonly called the power to...?

A. Specific to the properties they're place on

Because they aren't something that people in every house would be asked to pay at the same rate or with the same terms, liens are considered to be?

The legal description should be exactly the same on each of these documents.

First-time buyers are reviewing their paperwork, which includes the sales contract, mortgage documents, deed, and the title information. They ask their real estate agent about the legal description, and she tells them...?

A. All of the answer choice provided are correct

How can an easement be terminated?

By executor's deed, according to the will

How is property conveyed from a deceased person to their heirs when there is a will?

A.State Income Tax. North Carolina has three primary tax revenue sources. These sources include Real Property, which in North Carolina is defined as land and buildings, Personal Property, which includes tangible personal property, and motor vehicle taxes.

North Carolina has three primary revenue sources. Which of the following is not a North Carolina revenue source?

A. To get a better selling price

One common reason to make improvements is to have a better place to live. What is the other common reason?

Appliances

One of the biggest areas of misunderstanding for buyers and sellers when it comes to personal property involves?

A. Prescriptive easement

A court may create this type of easement if an encroachment was open, notorious, hostile, and continuous for a period of years?

A. The sudden loss of land

Accretion is the gradual accumulation or increase of soil on a shoreline, while erosion is the gradual loss of the soil. But what is avulsion?

A. According to Value

Ad valorem tax is a Latin phrase that translates literally to what English phrase?

A. Devise Devise is defined as a gift or disposal of real property by last will and testament.

An owner in severalty has the right to leave their real estate to someone else after their death. This is commonly called the power to...?

east, west, north, south

Baselines run .......... and ............, while meridians run ............ and ............?

A. Yes. it does not matter whether or not the encroachment was intentional

Bill built a new deck that extends over his neighbor's lawn. Bill did not know that he was crossing the property line when he built the deck. Is this an encroachment?

As Joint tenants Joint tenancy is defined as undivided ownership of a property interest by two or more persons each of whom has a right to an equal share in the interest and a right of survivorship.

Bob and Cindy, a married couple, own their home. They have an equal, undivided right to sell, mortgage, transfer, or encumber their property. Which of the following describes how they own the home?

plat map

Buyers are purchasing a lot in a subdivision, and they want to see how it fits into the overall plan, where the streets are, how the blocks are laid out, and what the lots around them look like. Their real estate agent suggests she needs a ...?

A. By July 1 Explanation: Each year there are significant dates to know regarding North Carolina property taxes. On January 1, a North Carolina tax lien officially attaches to the property's title. By January 31, all taxable property must be listed, or improvements disclosed to the county assessor's office. By July 1, each North Carolina county must set their yearly tax rate for its county-wide properties. On September 1, a property owner's real estate tax bill is due and payable.

By what date must each North Carolina county set its yearly tax rate for the properties located within that county's boundaries?

A. Tenancy in common

Co-ownership of property by two or more persons who each hold an undivided interest, without right of survivorship, is known as...?

A. Cement patio that extends up to the property line

Each of these could be considered an encroachment, except...?

A.January 1 of each year.

For most properties in the State of North Carolina, the date for the tax lien is?

A. Personal Property

Fructus industriales only grow on the land when they are cultivated by a person, and these crops are considered?

A.10 days from when the special assessment roll has been confirmed.

How long do North Carolina property owners have to appeal a special assessment roll?

A. They run with the land, so they transfer with the property

How long does an easement last?

A. Trade Fixture Explanation: John isn't the owner of the property, so he's installing a trade fixture for the business that he's operating. That trade fixture will be removed when John decides to move his business to another location, goes out of business, or the owner of the property doesn't renew his lease. Even though the display case is attached and may look like real property, it really belongs to John in the operation of his business.

If John installs a display case in the space he's renting, what would this be considered?

Trade Fixture John isn't the owner of the property, so he's installing a trade fixture for the business that he's operating. That trade fixture will be removed when John decides to move his business to another location, goes out of business, or the owner of the property doesn't renew his lease. Even though the display case is attached and may look like real property, it really belongs to John in the operation of his business.

If John installs a display case in the space he's renting, what would this be considered?

A. Include it in the contract.

If a buyer wants to keep some of the seller's personal property and make it part of the real estate transaction, they can negotiate that and then do what?

A. Fully disclose the encroachment to potential buyers

If a property owner who just decided to live with a neighbor's encroachment later decides to sell their house, they must...?

A. A Resale certificate Explanation: A condo that has already been owned by someone else can't be sold in the state of North Carolina without a resale certificate. This certificate generally includes information about the fees and taxes associated with that particular condo. That way, the buyer can be sure about what they're getting, and they won't have unexpected expenses related to the condo at a later date.

If someone wants to sell their condo, what do they need?

A. The ownership of the property reverts back to the original owner of the grantor of the life estate

In a reversion estate, what happens to the property when the life estate ends?

Physical property that has been permanently attached to real property

In real estate, how do you define a fixture?

A. Marital Interest

In some states, when one spouse owns real estate in severalty, the other spouse will be required to sign deeds or other conveyances affecting the property, because of their marital status. What is the interest the spouse, whose name is not on the title, commonly referred to?

Yes. Title does not have to be perfect to be marketable Explanation: Not all liens or encumbrances will cause a title to not be marketable.

Jeff is selling his real estate. A title search revealed that 100 years ago, there was a mortgage lien on the property that was not canceled on record. The terms of the mortgage and state law say that the mortgage is no longer enforceable. Is title marketable?

Top right corner

Jill's buyers are reviewing the government survey of a large parcel of land and they see that it is described in squares laid out in grids. They are interested in the tract numbered 1, and they would find that on this grid in the ...?

Metes and bounds

Non-subdivision property or large tracts of land are generally described using ...?

A. Community property

Property acquired by husband and/or wife during a marriage when not acquired as the separate property of either spouse is known as...?

A.A special assessment is an explicit taxation charge levied against parcels of real property that will benefit from a public works project. In contrast, property tax assessments are levied against all property.

Property tax assessments differ from special assessments in what way?

A. Specific Liens

Real estate tax and assessment liens are common, and both are types of what?

A. As tenants in common

Siblings John and Todd own a cabin together. They each own a divided piece of the overall parcel of real estate. Which of the following describes how they own the cabin?

The street was renamed and they have a new address, but the legal description is still the final authority

The buyers are under contract for a property with the address of Rural Route 2, and by the time of closing, when they do their final walkthrough, they notice the street now has a sign up that says Peach Street and the house they are buying has the number 25. This means that...?

A. Single-family residences that are owner-occupied Explanation: if a person who owns a single-family residence his having a large construction job completed, they don't need to be part of the lien agent process. Companies that do work there aren't required to get a lien agent, and the process is handled differently.

The exemption to construction jobs that need a lien agent is for?

The western U.S. The Government Survey System is a federal land survey system that has been applied to most of the land added to the United States since the system was adopted in 1785.

The government survey system is hundreds of years old and is most commonly used in ...?

Dominant Estate

The property that benefits from an easement appurtenant is called the...?

A. Servient Tenement

The property that is subject to an easement appurtenant is called the...?

A. To that particular parcel of property

The tax lien on real property for unpaid taxes imposed on a parcel of North Carolina real estate is a lien specific to what?

A. 2020-06-01

The tax relief programs offered for certain North Carolina properties and their owners have an application deadline each year of what date?

with metes and bounds

The terms monuments, benchmarks, and point of beginning (POB) are most often used...?

A. Bundle of Rights

The true value of property ownership as a whole is found in the combined power of the?

From right to left, then left to right in alternating lines of 6 squares

The way the 36 sections are numbered is...?

HUD Certificate label

To prove they meet safety and quality requirements, what must newer mobile homes have?

That this is only an estimate, and that a reliable verification of lot lines must be done through licensed surveyors.

Todd is showing property, and the buyers want to see where the property lines are. Todd walks around with the buyers and they locate the markers that define the property boundaries. The buyers are very concerned that the lot lines they see are not accurate, and Todd tells them...?

A. 10 years

Water and sewer lines being installed may only require that special assessments be due and payable when the lines are connected, or within how many years from the date of the assessment roll?

A. Fee simple and life estate Explanation: The two types of freehold estates are fee simple and life estate. With a fee simple estate, the buyer pays a fee in exchange for owning the property indefinitely, and they can pass the property to their heirs. A life estate ends at the end of the property owner's life or at the end of the life of another specified person.

What are the two types of freehold estates?

Foreclosure

What can result if a mechanic's lien, where $30,000 or more in work is being done and a notice was filed to the lien agent, goes unpaid?

A. North Carolina Uniform Commercial Code

What controls the rules and regulations for a security interest in fixtures in North Carolina?

The North Carolina Condominium Act of 1986

What governs the specific details that come with condo purchases, sales, and ownershi

A. The North Carolina Condominium Act of 1986.

What governs the specific details that come with condo purchases, sales, and ownership?

Someone who receives real property through a will. Beneficiary is the person who received personal property through a will

What is a devisee?

The interest or ownership rights a person has in real property

What is an estate?

A. Master Deed

What is another common term for the "Declaration of Condominium" the developer files with the county?

A. Mortgage

What is one of the most common types of liens on a property?

A. If the appraised value is less than the market price, the lender may not approve the loan for the buyer. Explanation: Sometimes, market conditions can dictate high prices or a buyer and seller may agree on a high price, but the appraiser may say that the home is not worth that price. In this situation, the lender may not be willing to approve the loan for the buyer. Typically, lenders will not lend more than a home is worth because the lender relies on the underlying value of the home as collateral on the loan.

What is something that can happen if there is a difference between the market price and the appraised value of a home?

The written report of the chain of title

What is the abstract of title?

The order of deeds to ownership of the property from seller to buyer

What is the chain of title?

To make sure that property is passed in order from buyer to seller without any breaks.

What is the closing attorney looking for in the abstract of title?

A. A town house includes the ownership of the exterior and the land Explanation:When you buy a condo you only have control over the inside of it, much in the same way you would with a rental apartment. A town house gives you the opportunity to have control over the exterior of the unit as well as the land, so you can do things like add exterior decorations and landscaping.

What is the difference between condos and town houses?

The right of survivorship: when one dies, their ownership goes to other joint tenant

What is the distinguishing feature of a joint tenancy?

A. A freehold estate lasts for an indefinite amount of time and a leasehold estate exists for a fixed period of time

What is the main difference between a freehold estate and a leasehold estate?

As a freehold estate

What is the most common way to buy property?

A. Doctrine of prior appropriation

What is the rule called that addresses how water is used and states that the first person to use or divert water for a beneficial purpose can continue to do so and have the rights to that water?

The voluntary decision by a property owner to convey the title of their property to another party.

What is transfer of voluntary alienation?

A. The Machinery Act

What legislation sets forth the regulations regarding North Carolina Property liens?

A. Due and payable

When an assessment abeyance period expires, the assessment amount becomes?

A. It passes according to the deceased owner's will, or according to state law

When an owner of property held as tenants in common dies, what happens to his or her share of the property?

A. It depends on the particular North Carolina taxing authorities' protocols and schedules.

When are real estate taxes due and payable in each of North Carolina's county authorities?

A. In January of the following year, if real property taxes remain unpaid explanation:Any tax lien that has been imposed and attached to real property as required, on January 1, does not become actionable until the January of the following year if real property taxes remain unpaid

When does a lien that is attached to a North Carolina property become an actionable lien?

At the end of the life of the person the interest in the property is based on

When does ownership of a life estate end?

A. Basic Repairs and Maintenance

When improvements are made to a property, these are changes that go beyond what?

A. No

When property is owned in joint tenancy, can one owner have a greater share than another?

A. No In a joint tenancy, each owner has an equal share in the property. this is a requirement under the unity of interest.

When property is owned in joint tenancy, can one owner have a greater share than another?

Easement by Prescription

When the dominant estate has used the servient estate property in an open, hostile, and continuous manner for a number of years, it may create a/an...?

A. An easement by grant

When two property owners join together to create a written agreement transferring an easement to another party, what is the easement called...?

A. Exclusion explanation: Property owners have the right to exclude others from that property, with the exception of law enforcement for specific reasons and a few others who have legal standing to come onto a piece of property.

When you want to keep people off of your property and be left alone, you can do that through which right?

Exclusion

When you want to keep people off of your property and be left alone, you can do that through which right?

A. A variable-rate per frontage foot assessment of real property that will not benefit from the project.

Which of the following CANNOT be used as a basis for determining how a special assessment is calculated?

A. Both their own utility costs and maintaining the interior of their individual units.

Which of the following are cooperative residents usually responsible for?

A. Apartment-style building

Which of the following could be structured as a cooperative?

All answers are correct

Which of the following is a requirement to create an easement by prescription?

Lack of use of the land

Which of the following is not required for a prescriptive easement?

A. Tenancy in Common Married couples own property as a tenancy by the entireties or community property

Which of the following is the least common type of real estate ownership when a married couple owns property together?

A. You must use a legal instrument such as a deed or a will to make a property transfer official

Which of the following statements is true? A. You must use a legal instrument such as a deed or a will to make a property transfer official. B. You do not need to use a legal instrument such as a deed or a will to make a property transfer official. C. You can legally transfer property through a verbal agreement and a handshake. D. You can transfer properties using either legal instruments or verbal agreements.

A. Someone with a life estate can convey interest in their property but cannot convey more than they own Explanation: Someone with a life estate can convey their interest in the property but not more than they own. For example, if someone has a life estate to a home, they can give the home to their friend, but their friend can only live in the home until the end of the life estate. The owner of the life estate can not promise the property to someone after their death because that is more than they own.

Which of the following statements is true? A.Someone with a life estate can convey interest in their property but cannot convey more than they own. B.Someone with a life estate can never sell their interest in the property. C.Someone with a life estate can sell the property to someone else as a fee simple estate. D.Someone with a life estate can automatically pass the property to their heirs.

A. Apartment-style living with deeded, fee-simple ownership A cooperative is not considered real property since it does not involve a deed. a coop owner gets shares of stock in the coop building, and a proprietary lease to their unit.

Which one of these is not a reason someone might consider cooperative living?

A. An individual, a business entity, or a trust

Who can own property in severalty?

A. Trustee

Who is the person who holds nominal title of assets held inside of a trust?

A. Trustee Trustee is defined as a person who holds the title to property for the benefit of another called a beneficiary

Who is the person who holds nominal title of assets held inside of a trust?

A. All of the answer choices provided are correct

Why might someone want to create a land trust to hold real estate?

Fee simple and life estate

what are the two types of freehold estates